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The following is an example of an aggregate demand shock with a negative effect on a distributor: A) a recession B) a re...

The following is an example of an aggregate demand shock with a negative effect on a distributor:

A) a recession

B) a recession in a major trading partner

C) a significant tax increase on business

D) all the above

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Answer #1

"D"

All of the given options are a negative effect on a distributor as this will decrease the demand and they will be stuck with a increasing inventory.

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